Direct Line Net Income vs. Market Capitalization
Direct Line Insurance Market Capitalization vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Direct Line's current stock value. Our valuation model uses many indicators to compare Direct Line value to that of its competitors to determine the firm's financial worth. Direct Line Insurance is rated # 3 in net income category among its peers. It is rated # 2 in market capitalization category among its peers creating about 8.39 of Market Capitalization per Net Income. Comparative valuation analysis is a catch-all model that can be used if you cannot value Direct Line by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Direct Line's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Direct Market Capitalization vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Direct Line |
| = | 343.7 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.
Direct Line |
| = | 2.89 B |
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Direct Market Capitalization vs Competition
Direct Line Insurance is rated # 2 in market capitalization category among its peers. Market capitalization of Insurance—Diversified industry is currently estimated at about 45.65 Billion. Direct Line holds roughly 2.89 Billion in market capitalization claiming about 6% of equities under Insurance—Diversified industry.
Direct Line Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Direct Line, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Direct Line will eventually generate negative long term returns. The profitability progress is the general direction of Direct Line's change in net profit over the period of time. It can combine multiple indicators of Direct Line, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Direct Line Insurance Group plc provides general insurance products and services in the United Kingdom. Direct Line Insurance Group plc was founded in 1985 and is based in Bromley, the United Kingdom. Direct Line operates under InsuranceDiversified classification in the United States and is traded on OTC Exchange. It employs 9786 people.
Direct Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Direct Line. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Direct Line position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Direct Line's important profitability drivers and their relationship over time.
Direct Line Earnings per Share Projection vs Actual
Use Direct Line in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Direct Line position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Direct Line will appreciate offsetting losses from the drop in the long position's value.Direct Line Pair Trading
Direct Line Insurance Pair Trading Analysis
The ability to find closely correlated positions to Direct Line could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Direct Line when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Direct Line - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Direct Line Insurance to buy it.
The correlation of Direct Line is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Direct Line moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Direct Line Insurance moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Direct Line can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Direct Line position
In addition to having Direct Line in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Broad Market ETFs Thematic Idea Now
Broad Market ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Broad Market ETFs theme has 103 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Broad Market ETFs Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Consideration for investing in Direct Pink Sheet
If you are still planning to invest in Direct Line Insurance check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Direct Line's history and understand the potential risks before investing.
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